Kenyan Court Begins Hearing Petition to Block Sale of 15% Safaricom Stake

A Kenyan court has begun hearing a petition filed by opposition leader Kalonzo Musyoka challenging the proposed sale of a 15% government stake in Safaricom.  The case, being heard under urgency, seeks conservatory orders to halt or suspend the transaction pending full determination of the petition.

During the proceedings, legal counsel representing the National Treasury argued that the application for interim orders was premature, noting that the case file was still evolving and key amendments had been proposed by the petitioners. The court was told that the matter could not be fully determined in its current form due to pending procedural changes and additional parties being considered for joinder.

The government side maintained that Parliament had already approved the sale of the shares on March 31, 2026, under the Public Finance Management framework. It was further argued that the approval followed due process, including public participation and the imposition of conditions that must be met before completion of the transaction. The court also heard that the Public Procurement and Disposal Act does not apply to the disposal of government shares.

The defence emphasized that the transaction is legally grounded and falls within established statutory procedures, arguing that courts should exercise caution in interfering with decisions involving economic policy and state asset management unless illegality is clearly demonstrated. It was further stated that the courts should respect the separation of powers between the judiciary, legislature, and executive in matters of public asset disposal.

According to submissions presented, the proposed sale involves transferring 15% of government shareholding in Safaricom to a Kenyan entity, with projections indicating significant fiscal inflows to the state. The funds, it was argued, are intended to support infrastructure development, including roads, airports, bridges, and other public investments already incorporated into the national fiscal framework.

The petitioners, however, argue that the sale raises issues of public interest and constitutional compliance, seeking court intervention to preserve the status quo until the matter is fully heard and determined.

The court is expected to issue directions on the next stage of the proceedings, including timelines for the substantive hearing of the application for conservatory orders.